While a house loan is probably the easiest way to get started in regard to purchasing one’s dream house, there are a few particulars that need to be considered before sending across the all-important application. That said, there are many companies which offer home loans at highly competitive rates but more often than not, they levy a host of hidden charges on certain applications.
In the subsequent sections, we shall look at some of the most underrated home loan charges which are often ignored by the applicants; thereby often growing into bigger headaches, in future. A loan borrower must try to make a maximum home loan down payment for lower principal amount when applying for a house loan.
The Actual Interest
In most cases, the applicant has to take fixed and fluctuating interest rates into account. While the first one is more of a fixed charge, the latter varies on the basis of bank repo rates and other factors.
There are cases when EMIs bounce and instances like these come with certain penalties like the Bounce Charges. While these charges are usually levied on accounts that maintain insufficient balances, they are even quite detrimental to a person’s credit score.
Processing charges are the basic fees which are levied whenever home loan applications are processed. The rates, however, can vary, depending on the loan value and the concerned banking institution, providing the same.
This charge is often attracted when the concerned individual delays the entire loan repayment, in regard to the existing Easy Monthly Installment. A Loan borrower should we aware of how to reduce home loan interest and other latest loan news updates.
These charges are attracted when the individual pays off the entire loan sum at once, much before the due date.
In case the entire home loan amount is repaid in parts, a certain fee is charged by the bank, provided floating rates aren’t availed during the application process.
While a majority of housing loan providers levy additional hidden charges along with the existing interest rates, Bajaj Finserv makes sure that applicants are always at ease with the loan procurement process, regardless of the property in question.
Additional read: Know Here All Hidden Charges Involved In A Home Loan Before Applying